HC Deb 10 November 1969 vol 791 c12
13. Mr. Barnett

asked the Minister of Technology what study he has made of the effect on industry of the current level of interest rates; and if he will make a statement.

Mr. Alan Williams

The level of interest rates is only one factor affecting company finance in industry, and not necessarily the most important. The effect of interest rates, along with other factors, is most readily indicated by the recorded and expected levels of industrial investment which are kept under continuous review by the Government.

Mr. Barnett

It may not be terribly important to my hon. Friend. However, there are many unscrupulous firms which are charging exorbitant rates of interest which bear particularly hard on small companies, especially those in the development areas? Will he consider instituting an inquiry to see whether he can give assistance to firms of this type?

Mr. Williams

I will look at the point my hon. Friend has made, but I am sure that he will bear in mind the difficulties confronting the country and how successful the Chancellor of the Exchequer has been in holding interest rates even as they are, considering the Euro-dollar rate and the impact that is having.

Sir A. V. Harvey

Will the hon. Gentleman get some advice on this matter because he seems to be wide of the mark? Is he not aware that firms are having to pay very high rates of interest on money borrowed for import deposits? He may say that this is not important, but all the sums added together have an adverse effect on our exports.

Mr. Williams:

The hon. Gentleman may have misheard me. I did not say that they were not important; I said that they were not the most important.